Dollar, Nikkei Down
TOKYO (AP) _ The dollar fell in early trading against the yen Monday, and share prices on the Tokyo Stock Exchange also dropped moderately.
At midday, the dollar was trading at 142.18 yen, down 0.57 yen from Friday’s close of 142.75 yen. It opened at 141.70 yen and ranged between 141.70 and 142.30 yen. The dollar closed at 141.70 yen in New York Friday.
On the stock market, the Nikkei Stock Average of 225 selected issues shed 96.13 points, or 0.27 percent, ending morning trading at 35,431.16. It lost 151.90 points Friday.
Currency dealers said the dollar will remain firm through the end of the month.
″We expect it to stay around 141 yen and don’t anticipate a rise above 143 yen,″ said Masao Kuriyama, a dealer at Goldman Sachs, noting continued concern over instability in the stock market.
A dealer with the Bank of Tokyo, speaking on condition of anonymity, said market players were awaiting a spate of U.S. economic data, including the country’s advance economic indicators for September, due Tuesday, and the October employment figures, due Friday.
On the stock market, profit taking pushed the Nikkei average 141.30 points lower but it recovered somewhat later on buying of domestic demand-related issues such as real estate, construction and fuel shares, said Wako Securities dealer Shingo Takahashi.
Only 250 million shares changed hands.
Market activity was sluggish due to expectations that domestic interest rates will not decline in the near future and a perception of instability in the New York stock market, said Kaoru Shimura, fund manager at Sumitomo Life Insurance Co.